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Chart of the Week: SPX Chart — support

Posted By Barry Ritholtz On January 7, 2005 @ 12:00 pm In Markets | Comments Disabled

The S&P 500, even with the recent more aggressive selling, has not scored any structural breakdowns in trend. This suggests the recent "distributive wave" is more a correction of near-term over-exuberance than anything deeper.

Chart Watch – S&P 500 weekly chart with trend lines

Spx_2005_support [1]

click for larger chart

chart courtesy of Redwood Technimentals [2]

This
does not mean we can’t correct more after a modest bounce — but as of now, there is no evidence to support the notion that this
is the start of
a much larger correction — at least not yet.


Even with the recent pullback and moderating internals, neither support levels (red & green line – 1,175 and 1,160 levels respectively) nor the uptrend (black line) on the S&P 500 have yet to be violated.


.

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Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/01/chart-of-the-week-spx-chart-support/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/spx_2005_support.jpg

[2] Redwood Technimentals: http://www.technimentals.com/cgi-bin/mesh

[3] Stocks are not cheap : http://cbs.marketwatch.com/news/story.asp?guid=%7B8B08385C%2D8C3A%2D4638%2DBA84%2DC431A9AE9AD1%7D&siteid=mktw&dist=

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[6] Albert Einstein: http://www.heartquotes.net/Einstein.html

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